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Taxi firm - how to?

CPenneyCPenney Feels At HomeRegistered Posts: 32
Hi there all,
Sorry if this sounds really silly but I'm new to this and have tried to figure it out in my head and have just ended up with a headache!

If you were bookkeeping for a taxi firm, (I have considered cash accounting system but seems like everyone thinks this is a no-no - GAAP etc???), how would you record the sales, as they would all be fares paid for straight away?

I have thought about it from a cash book point of view - payments side would list fuel, insurance etc to be posted to main ledgers, but how would you account for the receipts in the main ledger (as there would be no Sales Ledger as such)?

Any help on this would be hugely appreciated!:confused1:

Comments

  • welshwizardwelshwizard Trusted Regular South WalesRegistered Posts: 465
    Receipts? Hmm - what about listing types of receipt? i.e. contract hire from custoemr A, B, C , and cash fares received from each driver/car (to provide management information on who is proving most valuable to the firm)? You should identify every possible source that money could come in from. (This is what i have done with my church's cashbook anyway.)
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    I would just run a cash/bank book with the driver listing how he has been paid and how much. Bookkeeping on those sort of jobs don't run like the AAT teach you!!

    Get the driver to list all his income and all his expenditure in a book as it happens and try and make sense of it from there.

    I would imagine his accountant will deal with the rest of the expenses that aren't incurred through the bank or cash book.
  • Nilesh MandviaNilesh Mandvia Feels At Home Registered Posts: 91
    CPenney wrote: »
    Hi there all,

    I have thought about it from a cash book point of view - payments side would list fuel, insurance etc to be posted to main ledgers, but how would you account for the receipts in the main ledger (as there would be no Sales Ledger as such)?

    !:confused1:

    Do the same for the receipts. Post straight to ledgers or you can open a cash sales/receipt account. Use this sales ledger account to record for all your cash receipts. If you need any help just pm me.

    Nilesh
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